The World Bank has called on the Nigerian government to initiate reforms aimed at shielding the nation’s most vulnerable citizens from the impacts of escalating inflation.
The World Bank has recommended that the government enhance the livelihoods of Nigerians by promoting more productive employment, emphasizing that this is essential for tackling the country's high poverty rates.
This guidance was outlined in the most recent Poverty and Equity Brief for Nigeria, published in April 2025, which was received on Monday.
Earlier last month, the Africa’s Pulse report highlighted a concerning trend: an increase in poverty levels among Nigerians over the next five years. It attributed this grim outlook to Nigeria’s structural economic challenges, heavy reliance on oil revenues, and overall national instability, which pose significant obstacles to effective poverty alleviation.
In response to the rising inflation triggered by recent reforms, the government has implemented temporary cash transfers aimed at supporting 15 million households in need.
The bank indicated that the roll-out process has been gradual.
President Bola Tinubu’s administration took significant steps to reshape Nigeria’s economy upon taking office on May 29, 2023. Notable measures included the abolishment of fuel subsidies and the decision to float the naira. While these reforms aimed to strengthen the economy, they also coincided with a rise in inflation rates.
By March 2025, Nigeria’s annual inflation edged up to 24.23 percent, up from 23.18 percent the previous month, marking the lowest rate since June 2023.
Food inflation, a key part of the overall inflation picture, showed some signs of relief, dropping to 21.79 percent from 23.51 percent the previous month.
On the other hand, core inflation—which leaves out the more unpredictable prices of food and energy—saw an uptick, rising to 24.43 percent compared to 23.01 percent in the prior month.
In terms of monthly changes, consumer prices increased by 3.90 percent in March, up from a more modest rise of 2.04 percent in February.
"Multiple shocks in a context of high economic insecurity have deepened and broadened poverty. Since 2018/19, an additional 42 million people have fallen into poverty, so more than half of all Nigerians (54 percent) are estimated to live in poverty in 2024, based on World Bank projections.
“Although recent macroeconomic reforms have begun to stabilise the economy, inflation remains high, dampening consumer demand and continuing to undermine the purchasing power of Nigerians. Labour incomes have not kept up with inflation, pushing many Nigerians, particularly in urban areas, into poverty,” the World Bank said.
Comments